Manual : Principles of Microeconomics

Manual

Principles of Microeconomics, 4th Edition

N. Gregory Mankiw Prepared by Linda S. Ghent

VP/Editorial Director: Jack W. Calhoun

Editor-in-Chief: Alex von Rosenberg

Publisher:

Steve Momper

Sr. Acquisitions Editor: Mike Worls

Developmental Editor: Jane Tufts

Contributing Editors:

Sarah K. Dorger

Jennifer E. Baker

Sr. Marketing Manager:

Brian Joyner

Assoc. Marketing Communications Sr. Production Project Manager: Emily S. Gross

Manager of Technology, Editorial: Vicky True

Technology Project Editor: Dana Cowden

Web Coordinator: Karen Schaffer

Sr. Manufacturing Coordinator: Sandee Milewski

Production House: OffCenter Concept House

Printer:

Darby Printing

Atlanta, GA Assistant Editor: Erin Berger

Ancillary Coordinator: Erin M. Donohoe

Art Director:

Michelle Kunkler

Production Artist: Patti Hudepohl

Internal and Cover Designer: Stratton Design

Cover Illustration:

Tate Gallery, London/Art Resource, NY

Internal Illustrator:

William Low/Cobalt Illustration Services

Manager:

Sarah Greber

COPYRIGHT © 2007

Thomson South-Western, a part of The

Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.

Printed in the United States of America 1 2 3 4 5 09 08 07 06

ISBN 0-324-31908-8

ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, information storage and

retrieval systems, or in any other manner—except as may be permitted by the license terms herein.

For permission to use material from this text or product, submit a request online at http://www.thomsonrights.com .

For more information about our products, contact us at:

Thomson Learning Academic Resource Center

1-800-423-0563

Thomson Higher Education

5191 Natorp Boulevard

Mason, OH 45040

USA

Preface

The instructor’s material that accompanies the five versions of Mankiw’s Principles of Economics, Fourth Edition textbooks address the needs of both novice and experienced instructors. To meet the needs of these two groups, this Instructor’s Manual with Solutions Manual comprises both chapter outlines and teaching tips as well as solutions to all of the questions and problems found in the textbook.

Linda Ghent of Eastern Illinois University prepared the main portion of each chapter including a synopsis of what is new in this edition compared to the third edition. Her work for each chapter also includes a list of learning objectives and key points. These items are followed by detailed chapter outlines that focus on the content found in the textbook. Helpful tips and icons occasionally interrupt these outlines. The bomb icon (Warnings) indicates areas where students may have particular difficulty with the material. The light bulb icon (Bright Ideas) offers ideas for presenting the material in a new or more thoughtful way. Also included in each chapter of the Instructor’s Manual are classroom activities, developed in part by Charles Stull of Kalamazoo College. Each activity provides important details to assist in planning as well as clear instructions for leading the activity. Recommended “Points for Discussion” connect the activity to the relevant economic concepts discussed in the chapter.

Using these resources, an instructor can quickly review the chapter learning objectives and chapter summaries to make sure their lecture notes cover everything in the text chapter. In addition, the chapter outlines are designed as a base for creating lecture notes for novice instructors. They may also be used as a complete set of notes for more experienced instructors. Therefore, this supplement is also available electronically from the product support Web site (http://mankiw.swlearning.com).

For queries and grading, the Instructor’s Manual contains solutions to exercises from the textbook. Dean Croushore (University of Richmond) prepared many of the solutions for the “Quick Quizzes,” “ Questions for Review,” and “Problems and Applications” found in the textbook.

Core Micro Macro Essentials Brief

Macro

Part 1: Introduction Part 1 Part 1 Part 1 Part 1

1 Ten Principles of Economics 1 1 1 1

2 Thinking Like an Economist 2 2 2 2

3 Interdependence and the Gains from Trade 3 3 3 3

Part 2: How Markets Work Part 2 Part 2 Part 2 Part 2

4 The Market Forces of Supply and Demand 4 4 4 4

5 Elasticity and Its Application 5 5 5

6 Supply, Demand, and Government Policies 6 6 6

Part 3: Markets and Welfare Part 3 Part 3 Part 3

7 Consumers, Producers, and the Efficiency of Markets 7 7 7

...